Trading plan for EUR/USD on November 7. Simple tips for beginners

On Monday, EUR/USD tried to continue its upward movement, which started on Friday, but the bullish enthusiasm quickly waned. This is not surprising since there was a specific macroeconomic background that backed the euro's rise and the dollar's fall on Friday, but there was basically nothing important on Monday. As a result, the pair showed volatility equivalent to 34 pips, generally indicating no significant movement. On the 5-minute chart, it was clear that the pair moved sideways throughout the day.

There were actually two economic reports on Monday, both related to business activity in the services sector. One was for Germany, and the other for the EU. However, second evaluations rarely deviate from the first. As a result, there were no market reactions.

On the 5-minute chart, two trading signals were generated. In both instances, the pair rebounded from the 1.0733 level, and in the second instance, it was clear that there would be no significant movement. In the first case, beginners could still open a long position while aiming for 1.0767, but the pair failed to reach that level throughout the entire European trading session. We couldn't even set a stop loss to breakeven because the pair couldn't even rise by 15 pips. Therefore, the trade should have been closed manually at the first convenient opportunity. There should have been no loss on that trade.

On the 30-minute chart, the pair has already started a new phase of the upward correction, but we don't know how long this will last. Take note that the pair remained stagnant for several weeks until the employment and unemployment data were released in the United States. We didn't see any significant movement on Monday, so now we expect the pair to fall, both locally and globally. The key levels on the 5M chart are 1.0451, 1.0483, 1.0526, 1.0568, 1.0611-1.0618, 1.0673, 1.0733, 1.0767-1.0781, 1.0835, 1.0871. A stop loss can be set at a breakeven point as soon as the price moves 15 pips in the right direction. On Tuesday, Germany will release its industrial output data, and the EU with its producer price index. The US calendar will be empty. Both reports are secondary of importance. Therefore, we don't expect strong volatility or the euro to rise further.

1) Signal strength is determined by the time taken for its formation (either a bounce or level breach). A shorter formation time indicates a stronger signal.

2) If two or more trades around a certain level are initiated based on false signals, subsequent signals from that level should be disregarded.

3) In a flat market, any currency pair can produce multiple false signals or none at all. In any case, the flat trend is not the best condition for trading.

4) Trading activities are confined between the onset of the European session and mid-way through the U.S. session, post which all open trades should be manually closed.

5) On the 30-minute timeframe, trades based on MACD signals are only advisable amidst substantial volatility and an established trend, confirmed either by a trend line or trend channel.

6) If two levels lie closely together (ranging from 5 to 15 pips apart), they should be considered as a support or resistance zone.

Support and Resistance price levels can serve as targets when buying or selling. You can place Take Profit levels near them.

Red lines represent channels or trend lines, depicting the current market trend and indicating the preferable trading direction.

The MACD(14,22,3) indicator, encompassing both the histogram and signal line, acts as an auxiliary tool and can also be used as a signal source.

Significant speeches and reports (always noted in the news calendar) can profoundly influence the price dynamics. Hence, trading during their release calls for heightened caution. It may be reasonable to exit the market to prevent abrupt price reversals against the prevailing trend.

Beginning traders should always remember that not every trade will yield profit. Establishing a clear strategy coupled with sound money management is the cornerstone of sustained trading success.